Greece: Grimbo or Grexit?

"Who's next?" contagion may well set in within the eurozone after Grexit.

PHOTO: BLOOMBERG

WE BELIEVE recent events have significantly increased the risk of Grexit, even if Grexit is still not our base case. We have previously highlighted the possibility of an extended period of "Greece in limbo" ("Grimbo") ahead of, or instead of, Grexit. This note considers the mechanics of Grimbo